EU Tightens Sanctions on Russia with Dynamic Oil Price Cap and Targets Rosneft Refinery

The European Union has escalated its economic pressure on Russia by introducing a dynamic price cap on Russian oil, now set to float approximately $15 below global market rates. The new mechanism, starting around $45-$50 per barrel, will adjust automatically at least twice a year, aiming to constrain Moscow's war funding without destabilizing global energy markets.

This marks a significant shift from the static $60 cap imposed in December 2022, which allowed non-G7 nations to access Western shipping and insurance services only if they adhered to the price limit. While the previous system maintained Russian oil flows to countries like India and China, the EU has deemed it insufficient as the war in Ukraine persists.

EU Commission President Ursula von der Leyen framed the measures as a direct strike against Russia's war machine, targeting energy, banking, and military-industrial sectors. In a notable expansion, Brussels has sanctioned Rosneft's major refinery in India—a first-of-its-kind MOVE against Russian-linked assets abroad.